Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Jim Ilchyshn who wrote (4109)	12/10/1997 1:02:00 PM
From: yard_man	Read Replies (1) \| Respond to of 116871

Generally taken to be a sign of a reversal, isn't it?

To: Jim Ilchyshn who wrote (4109)	12/10/1997 1:41:00 PM
From: scotty	Read Replies (1) \| Respond to of 116871

"Backwardization" is usually very bullish indicating tight supplies.Also heard news today that Japan was dumping U.S. bonds(DBC-CBS news)Bottom for gold?

To: Jim Ilchyshn who wrote (4109)	12/10/1997 1:50:00 PM
From: Jaakko	Respond to of 116871

Yes, I do.

To: Jim Ilchyshn who wrote (4109)	12/10/1997 2:25:00 PM
From: Little Joe	Read Replies (2) \| Respond to of 116871

Jim: I am an old time commodities market trader. I have seen the metals backwardize. I have seen this in silver, copper and although I don't recall ever seeing it in gold I have seen the spread narrrow to as little as ten cents. Backwardization almost always means higher prices. I have also seen it happen in oil. The reason is that there are carrying costs associated with owning commodities e.g. interest, storage fees and insurance. Since the holder of the commodity has to carry these expenses they are factored into the cost. When you have backwardization, it means that the current demand is so great that it overcomes these expenses. In other there is a very powerful demand for the cash product and this cannot continue for long without a rise in prices. I hope this was helpful. Live long and Prosper, Little Joe